- Sir Francis Baring established and Francis Baring Company in
London; 1806 - Alexander Baring (son) joined firm,
renamed Baring Brothers & Co., merged with London offices of
Hope & Co. (Alexander worked with Henry Hope); February
26, 1995 - collapsed after trader, Nick Leeson, lost
$1.4 billion in futures contracts trading.
Salomon Oppenheim jr. (17) formed commission and exchange house
in Bonn, Germany; focused on shipping industry (traded in oil,
wine, linen. tobacco, coffee);
1810 - second largest bank in Cologne (equity
capital of 250,000 thalers); 1837 - co-founded Rheinische
Eisenbahn (Rhine Railway); 1839
- co-founded Colonia Kölnische Feuerversicherung (Colonia
Cologne Fire Insurance); 1852
- co-founded Crédit Mobilier in Paris as Europe's first major
incorporated bank; 1853
- involved in founding Darmstädter Bank für Handel und Industrie
(Darmstadt Trade and Industry Bank);
1856 - involved in founding
International Bank in Luxembourg;
1880 - co-founded Kölnische
Unfall-Versicherungs-AG (Cologne Accident Insurance Company;
merged with Colonia in 1919); 1904
- converted into commercial limited partnership
(Kommanditgesellschaft) after bad investments in electrical
industry; Disconto-Gesellschaft, Germany's second largest bank,
held stake (until 1919); 1938
- Nazi pressure forced name change to Pferdmenges & Co. (partner
Robert Pferdmenges) until 1947;
1947 - co-founded Auto Union, now Audi AG.;
1952 - formed
Konsortium für Kurssicherung (Consortium for price hedging) with
27 companies from German iron and steel industry; hedged
currency risks in export transactions for consortium members;
1970 - numerous
insurance companies merged, formed Colonia Versicherung AG
(Colonia Insurance Company); Sal. Oppenheim as majority
shareholder of second largest German insurance group;
1989 - converted
into partnership limited by shares (Kommanditgesellschaft auf
Aktien); 1999 -
defined core business as asset management, investment banking;
largely withdrew from commercial lending activities;
2005 - acquired
Frankfurt BHF-Bank AG, became Europe's largest independent
private bank; March 2010
- acquired by Deutsche Bank; ceased investment banking
1796 - Henri Hentsch established Hy Hentsch &
Cie in Geneva, Switzerland, silk-trading and commission
business; June 19, 1798
- joined with Jean Gédéon Lombard (second cousin), established
Henri Hentsch & Lombard, "commissions operations" (exchange
transactions necessitated by multiple currencies in use);
1830 - Jean-Eloi
Lombard took over Bank’s internal development; Charles and
Albert Hentsch (sons) continued work of their father; Charles
Odier, new Partner, managed international financing operations
(maritime, river transport and in railway sector); mid-19th
century - Alexis Lombard, James Odier took over management of
Firm; 1857 -
co-founded Geneva Stock Exchange;
1907 - co-founded Swiss National Bank;
1872 - James
Odier, Jules Darier-Rey founded "La Genevoise", first local life
insurance company; 1914
- Emile Odier, Albert Lombard, Jean Lombard, Edmond Odier
managed Firm; 1919
- among first to establish pension fund for employees;
1951 - Marcel
Odier expanded, first private bank to set up outside Switzerland
(in Montreal); 1979
- first European bank to own seat on New York Stock Exchange;
2002 - renamed
Lombard Odier Darier Hentsch & Cie;
2010 - seventh generation of Hentsch
family; active in nearly 20 countries with about 1,900
employees; Geneva's oldest firm of private bankers, one of
largest in Switzerland and Europe.
Moses Marcus and Gerson opened Warburg bank in Hamburg
(M.M.Warburg & Co), laid foundations for banking dynasty;
1934 - Siegmund
Warburg fled oppression of Nazi regime, settled in London;
1946 - founded,
built S.G. Warburg; 1994
- acquired by Swiss Bank Corporation (SBC), renamed SBC Warburg
- A Division of Swiss Bank Corporation".
- Irish merchant Alexander Brown established business in
Baltimore, MD; imported Irish linen, exported cotton, tobacco to
- William Brown (oldest son of Alexander Brown) established
import/export business in Liverpool, under the name William
Brown & Co.;
- Son of Alexander Brown opened Philadelphia office of
Liverpool merchant bank, Brown Brothers & Co.;
1825 - Joseph
Shipley joined to finance merchants shipping goods between
Britain, United States, many other parts of Europe, the
Americas; pioneered payment through 'Letters of Credit';
1837 - name
changed to Brown Shipley & Co.;
1863 - London office opened, business focused
largely on Acceptance Credits, foreign exchange business,
deposit banking; 1918
- partnership between Brown Shipley and its American partners,
Brown Brothers & Co., ended, although each continues to act as
agents for the other; firm built substantial business in the
wool, timber, fur trades; 1946
- made transition to incorporation as limited company; January 1,
1931 - W. A. Harriman & Co. merged with Brown Brothers;
Prescott Bush - Managing Partner;
1957 - leading member of Acceptance Houses
Association, prominent role in London Money Market; developed
'Investment Advisory Service';
1992 - acquired by European bank KBL European
Private Bankers; 2005
- owned directly by new KBC Group NV, one of Europe's largest
October 17, 1890 -
Ludwig Hirschhorn established Hirschhorn & Grun established in
Zurich, Switzerland; 1896
- Julius Bear (nee Bar) joined firm; dissolved, renamed
Hirschhorn, Ulm & Baer; April 23,
1901 - assets/liabilities acquierd by Julius
Baer & Co., limited partnership (after death of Hirschhorn);
May 1, 1901 - firm
became member of Zurich Stock Exchange;
March 17, 1918 - published first issue
of "Wochenbericht" (research report for banks; discontinued
December 2005); January 1, 1934
- Walter J. Baer one of founding members of Swiss Private
Bankers Association; November 27,
1940 - established Baer Custodian Corporation in
New York; December 10, 1965
- established Julius Baer Foundation;
March 10, 1970 - launched Baerbond (its
first Swiss investment fund);
November 27, 1974 - established Julius Baer &
Co. (Holding) Ltd.; Julius Baer & Co. assets transferred to
Bank Julius Baer & Co. Ltd.; April
15, 1980 - Baer Hiolding Ltd. went public;
February 4, 1983 -
established Julius Baer Investment Management Inc. (licensed by
SEC on April 13, 1983); April 2,
1984 - opened branch in New York (under Federal
Charter from International Banking Act);
February 12, 1986 - acquired 51% of
Societe Bancaire in Geneva (completed in 1997);
1996 - renamed
Julius Baer Holding Ltd., instituted division-based management
structure; October 10, 2003
- withdrew from institutional brokerage business, focused on
- Lewis B. Cullman did first LBO: $62.4 million purchase of
Orkin Exterminating With a $1,000 investment.
- "bootstrap" deals; 1980's - leveraged buyouts;
1990s -private equity".
1985 - Peter G.
Peterson (former Lehman Brothers senior partner), Stephen
Schwarzman founded Blackstone Group with $400,00 in
capital; June 21, 2007 - went public; biggest offering since
September 23, 1998 - 16 major financial
institutions, investors in and lenders to Long Term Capital
Management (LTCM) met at New York Federal Reserve Bank to
determine capital contributions required bail LTCM out - about
$$3.5 billion in return for
substantially diluting existing shareholders' stake in LTCM.
Control of the firm passed from the current management to a
committee determined from the outside by the new investors.
25, 2008 - World Economic Forum results of a yearlong
study of 5,000 private equity transactions (randomly chosen)
from 1980 through 2005 to determine whether buyouts create jobs
or result in more layoffs (Economic Impact of Private Equity):
1) private equity does not create more jobs, but cut,
on average, only about 1% more jobs than peers, 2) two
years before buyout, a company cuts, on average, 4% more of its
work force compared with peers (possibly because preparing for
sale), 3) acquired companies, on average, cut 7% of work
force over 2 years, but at same time, added jobs (usually new
positions in new locations) at pace of about 6%, resulting in a
net loss of 1%, 4) by 4th, 5th years of private equity
ownership, growth of company’s work force became similar
to its public peers, 5) 6% of all buyouts eventually end
in bankruptcy filing, slightly higher than average for public
companies (buyout companies defaulted at half rate compared with
public companies with similar junk debt ratings), 6)
public-to-private transactions reflected only 6.7% of total
number of buyouts since 1980 (28% of firms acquired, measured in
terms of dollar value). The study did not look at new or lost
jobs abroad, did not examine what would have happened to
employment had buyouts not occurred.
contrasted with study commissioned by Private Equity Council
(lobby group) of 42 large companies (selected by buyout groups)
acquired by 8 private equity firms from 2002 to 2005 (World
Economic Forum data did not look at deals from 2003 to 2005);
results showed that employment grew 8.4% at acquired
2008 - Private equity deals decline
(ABN AMRO Bank), Jeroen Smit;
[translated by Donald Gardner ... et al.] (2010).
The Perfect Prey: The Fall of ABN Amro, or What Went
Wrong in the Banking Industry. (Amsterdam,
Netherlands: Prometheus, 431 p.). Editor-in-Chief and
Publisher of the Business Weekly (FEM Business). ABN
AMRO Bank; Banks and banking --Netherlands; Bank mergers
--Netherlands; Bank failures --Netherlands; Global
Financial Crisis, 2008-2009. October 9, 2007 - Royal
Bank of Scotland (RBS) completed
biggest deal in banking history, record 71 billion euros
acquisition of Dutch bank ABN Amro; dismantled ABN Amro,
Holland's number one bank ceased to exist; Netherlands
lost bank at heart of economy for 183 years; 2008 - RBS
forced into largest rights issue in British corporate
history, underwritten by Government; ABN Amro - toxic, rotten core
disguised by paper profits of billions every
year; one of Europe's largest, longest established banks
- from powerful predator to perfect prey in little
more than decade.
(Baring), Ralph W. Hidy (1970). The
House of Baring in American Trade and Finance; English
Merchant Bankers at Work, 1763-1861. (New York, NY:
Russell & Russell, 631 p. [orig pub. 1949]). Baring
Brothers & Co.; Investments, British--United States.
(Baring), Philip Ziegler (1988).
The Sixth Great Power: A History of One of the Greatest
of All Banking Families, the House of Barings, 1762-1929.
(New York, NY: Knopf, 430 p.). Baring Brothers & Co.
Ltd.--History; Merchant banks--Great Britain--History.
(Baring), Helga Drummond (2008).
The Dynamics of Organizational Collapse: The Case of Barings
Bank. (New York, NY: Routledge, 143 p.). Professor,
Organisational Learning, Behaviour and Change, University of
Liverpool Management School. Leeson, Nicholas William; Barings
Bank; Bank failures -- Great Britain; Merchant banks -- Great
Britain; Organizational behavior -- Case studies; Corporate
culture -- Case studies; Organizational effectiveness -- Case
studies. High-level, multi-theoretical analyses, psychological
and sociological theories to explore events of Nick Leeson’s
employment with Barings' in Singapore in 1992 to Barings'
collapse in 1995.
(Blackstone Group), Peter Peterson
The Education of an American Dreamer: How a Son of Greek
Immigrants Learned His Way from a Nebraska Diner to Washington,
Wall Street, and Beyond. (New York, NY: Twelve, 448
p.). Chairman of Blackstone Group, Chairman Emeritus of the
Council on Foreign Relations and founding Chairman of the
Peterson Institute for International Economics. Peterson, Peter
G.; Peterson family; Greek Americans --Biography; Businessmen
--United States --Biography. Family, love, business, politics,
ambition, idealism, failure, fulfillment; marriage and family
hardship; lessons in political gamesmanship; thoughts on
obsessive desire to succeed; learning the meaning of "enough";
son of Greek immigrants who ran diner in Kearny, NB; Chicago
advertising days (1950s), youngest CEO of Fortune 300 Company
(Bell & Howell, Secretary of Commerce (youngest Cabinet member)
in Nixon's White House, turnaround and tumultuous days of Lehman
Brothers, creation of The Blackstone Group; establishment of
Peter G. Peterson Foundation to do something about America's
politically untouchable challenges that threaten America's
future (massive entitlement obligations, ballooning health care
costs, energy gluttont.
Peter Peterson -
Steve Schwarzman - Blackstone Group
(Blackstone Group), David Carey and John E.
King of Capital: The Remarkable Rise, Fall, and Rise Again of
Steve Schwarzman and Blackstone. (New York, NY: Crown
Publishers, 336 p.). Senior Writer for The Deal; Former
Assistant Managing Editor at The Deal. Blackstone Group; Private
equity; Consolidation and merger of corporations; Leveraged
buyouts; Financial services industry --United States; Investment
advisors --United States. How Blackstone (and other private
equity firms) transformed from gamblers, hostile-takeover
artists, 'barbarians at the gate' into disciplined,
risk-conscious investors; from two guys, secretary to one of
Wall Streetâ€™s most powerful institutions; far outgrew older
rival KKR; how Steve Schwarzman came to epitomize spectacular
new financial fortunes amassed in 2000s (pay one year of $398
million, $684 million from Blackstone IPO).
(Brown Brothers & Company), John Cosby
A Hundred Years of Merchant Banking, a History of Brown
Brothers and Company, Brown, Shipley & Company and the
Allied Firms. (New York, NY: Arno Press, 374 p.
[orig. pub. 1909]). Brown Brothers & Company--History;
Merchant banks--United States--History; Merchant
(Brown Brothers), John A. Kouwenhoven
Partners in Banking: An Historical Portrait of a Great
Private Bank, Brown Brothers, Harriman & Co., 1818-1968.
(Garden City, NY: Doubleday, 248 p. [2nd ed.]). Brown
Brothers, Harriman & Co.--History.
(Brown Shipley & Co.), Aytoun Ellis
Heir of Adventure: The Story of Brown, Shipley & Co.
Merchant Bankers 1810-1960. (London, UK: Brown,
Shipley & Co. Ltd., 165 p.). Brown, Shipley & Co. Ltd.;
Merchant banks--Great Britain. 150th anniversary of the
(Charterhouse Group), Laurie Dennett
The Charterhouse Group 1925-1979: A History.
(London, UK: Gentry, 175 p.). Charterhouse Group --
History; Great Britain Holding companies.
(Conrad Hinrich Donner), Bruno W.F.
Mit Stehpult und Tintenfass: Erinnerungen aus dem Kontor
einer Hamburger Merchant-Bank. (Hamgurg, GER:
Christians, 239 p.). Conrad Hinrich Donner
(Firm)--History; Merchant banks--Germany
(Jay Cooke & Co.),
Henrietta M. Larson (1968). Jay Cooke, Private Banker.
(New York, NY: Greenwood Press, 512 p. [orig. pub.
1936]). Cooke, Jay, 1821-1905; Banks and banking--United
(Cullman Ventures Inc.), Lewis B.
Can’t Take It with You: The Art of Making and Giving
Money. (Hoboken, NJ: Wiley, 224 p.). Cullman,
Lewis B., 1919- ; Businessmen--United States--Biography;
Philanthropists--United States--Biography. Originated
the LBO in 1963 with the leveraged buyout of Orkin
Exterminating Co. (engineered the $62.4 million purchase
of Orkin Exterminating with $1,000 investment); amassed
fortune via LBOs.
(Glyn, Mills & Co.), Roger Fulford
Glyn’s, 1753-1953. Six Generations in Lombard Street.
(London, UK: Macmillan, 266 p.). Glyn Mills & Co.;
Merchant banks--Great Britain--History.
(Hambro), Bo Bramsen and Kathleen Wain
The Hambros, 1779-1979. (London, UK: Joseph, 457
p.). Hambro family.
(Indosuez), Hubert Bonin (1987).
Indosuez: L'autre Grande B anque D'affaires. (Paris,
FR: Economica, 141 p.). Indosuez (Firm :
France)--History; Merchant banks--France--History.
(Kleinwort Benson), Jehanne Wake
Kleinwort, Benson: A History of Two Families in Banking.
(New York, NY: Clarendon Press. Kleinwort Benson
Lonsdale (Firm); Bankers--Europe--Biography;
Merchants--Europe--Biography; Kleinwort family; Benson
family; Merchant banks--Europe--History;
Germany--Genealogy; Great Britain--Genealogy.
Foster), Ted Kavanagh (1948). The History
of Knowles & Foster, 1828-1948. (1948 - London, UK: T.
Kavanagh Associated, 92 p.). Knowles & Foster (Firm); Business
enterprises. 1826 - started in Brazilian trade; 1828 - founded
as Foster Brothers; 1853 - renamed Knowles & Foster; specialized
in trade between Britain, Portugal, Brazil; Thomas Foster
Knowles most active partner (1878-1939); appointed, at various
times, bankers to Portugese Royal Family, to Brazilian Emperor;
created English Bank of Rio de Janeiro, acted as directors of
London and River Plate Bank; 1886 - Rio Flour Mills Co. - best
(Kohlberg Kravis Roberts), Sarah
The Money Machine: How KKR Manufactured Power & Profits.
(New York, NY: Warner Books, 345 p.). Kohlberg Kravis
Roberts & Co.--History; Consolidation and merger of
corporations--United States--Finance; Leveraged
(Kohlberg Kravis Roberts), George
Merchants of Debt: KKR and the Mortgaging of American
Business. (New York, NY: Basic Books, 328 p.).
Reporter (Wall Street Journal). Kohlberg Kravis Roberts
& Co.--History; Consolidation and merger of
corporations--United States--Finance; Leveraged
(Kohlberg Kravis Roberts), George P.
Baker and George D. Smith (1998).
The New Finance Capitalists: Kohlberg Kravis Roberts and
the Creation of Corporate Value. (New York, NY:
Cambridge University Press, 257 p.). Economist and
Historian, respectively. Kohlberg Kravis Roberts & Co.;
Consolidation and merger of corporations--United
States--Finance; Leveraged buyouts--United States.
(Morgan Grenfell), Kathleen Burk
Morgan Grenfell, 1838-1988: The Biography of a Merchant
Bank. (New York, NY: Oxford University Press,
348 p.). Morgan Grenfell & Co.--History; Merchant
(Morgan Grenfell), Dominic Hobson
The Pride of Lucifer: Morgan Grenfell, 1838-1988: The
Unauthorised Biography of a Merchant Bank.
(London, UK: Hamish Hamilton, 482 p.). Morgan Grenfell &
Co.--History; Merchant banks--Great Britain--History.
(Paribas), M’hamed Sagou; preface de
Jean-Marie Chevalier (1981). Paribas, Anatomie d’Une
Puissance. (Paris, FR: Presses de la Fondation
Nationale des Sciences Politiques, 245 p.). Paribas
(Paribas), Jean Baumier (1988).
La Galaxie Paribas. (Paris, FR: Plon, 273 p.).
Paribas (Firm)--History; Banks and
(Paribas), Eric Bussiere (1992).
Paribas: Europe and the World, 1872-1992.
(Paris, FR: Fonds Mercator, p.).
(Paribas), Frederic Lordon (2002).
La Politique du Capital. (Paris, FR: Odile
Jacob, 347 p.). Banque Nationale de Paris; Paribas
(Firm); Bank mergers--France.
(Schroders), Richard Roberts (1992).
Schroders, Merchants & Bankers. (Basingstoke,
UK: Macmillan, 616 p.). Schroeder family; J.-F.-Schröder-Bank--History;
Bankers--History; Merchant banks--History; Investment
(Tricontinental Holdings Limited),
Hugo Armstrong and Dick Gross (1995).
Tricontinental: The Rise and Fall of a Merchant Bank.
(Carlton, VIC: Melbourne University Press, 333 p.).
Victoria. Royal Commission into the Tricontinental Group
of Companies; Tricontinental Holdings Limited; Merchant
(M. M. Warburg), Eduard Rosenbaum
M. M. Warburg & Co., 1798-1938, Merchant Bankers of
Hamburg. (New York, NY: Holmes & Meier
Publications, 190 p.). M.M. Warburg & Co.
(M. M. Warburg), Eckart Klessmann
(1998). M.M. Warburg & Co.: Die Geschichte eines
Bankhauses. (Hamburg, Germany: Dolling und Galitz,
2025 p.). M.M. Warburg & Co.--History; Banks and
(S. G. Warburg & Co.), Niall Ferguson
High Financier: The Lives and Time of Siegmund Warburg.
(New York : Penguin Press, 576 p.). Laurence A. Tisch Professor
of History (Harvard University), a Senior Research Fellow (Jesus
College, Oxford University), and a Senior Fellow at the Hoover
Institution (Stanford University). Warburg, Siegmund, Sir,
1902-1982; Jewish bankers --Biography; Bankers --Great Britain
--Biography. Refugee from Hitler's Germany, became dominant
figure in postwar City of London, one of architects of
European financial integration; near collapse, "Aryanization" of
his family's long-established bank in 1930s; frustrated by
stagnation of Kuhn Loeb in 1950s; resolved that S. G. Warburg
(founded in 1946) would be different; embodied ideals of haute
banquet-high finance - always eschewed fast buck in favor of
gilt-edged advice; financial innovator (engineered Britain's
first hostile takeover), pioneer of European economic
integration (helped invent Eurobond), prophet of globalization,
paragon of fiscal rectitude, key behind-the-scenes adviser to
governments in London, Tokyo, Jerusalem; complex and ambivalent
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